If you feel that silver will rise, then probably the best way to capitalize on this opinion is to buy the silver ETF. However, I prefer to hold silver stocks, as there can be more leverage in doing so, and that way I don't have to convert my Canadian Dollars into US Dollars to buy the ETF. The problem with buying silver stocks is determining which ones to buy. Ideally, there would be a silver stocks ETF, but since there is not, I have tried to find stocks that have a close correlation to... Read Full Story

The previous post discussed some significant breakouts in the Euro charts, and the post before that showed some major developments in the US Dollar chart. All of this was meant to be indirect bullish evidence in favour of gold and gold stocks. In this post, let's have a look at gold stocks directly. In order to understand the upcoming chart, I would urge you to read the following two articles:Ripples, Waves, and TidesHow to Use Volatility to Make Trading Decisions These articles go over... Read Full Story

As you probably know, gold and gold stocks went ballistic yesterday. The HUI Gold Bugs Index was up by 6.61%, and Gold Bullion increased by about 13 dollars. Today, however, was not as promising. The gold bullion ETF, GLD formed a bit of a shooting star on the daily chart: In addition, the entire candle is outside the upper bollinger band, and the RSI is getting uncomfortably overbought. Notice that the high for the day was 70.00, which is round number resistance. But let's not just rely... Read Full Story

One of the forces behind the recent strength in gold stocks has been a rising Euro.  This is because a rising Euro puts pressure on the US Dollar, which bolsters gold.  At this moment, the weekly Euro chart is at an interesting juncture.   As shown below, the Euro is at the apex of an ascending triangle.  This means that it must break support or resistance within the next couple weeks.  The direction of this breakout will determine the future course of gold prices. For a combination of... Read Full Story

The month of August has come and gone, so I thought I'd show a monthly chart of gold stocks to see how this month affected the big picture. I posted a monthly chart of the XAU a few weeks ago, and I indicated that a bull flag had formed. This pattern has not yet come to fruition, but it has not been negated either. You'll see what I mean in this following chart: Keep in mind that this chart goes back to the 1980's, and each candle line represents an entire month. The candle furthest to... Read Full Story

One of the advantages that comes with tinkering with charts for hours each day is that I occasionally stumble across something really interesting. Although I was somewhat hesitant to release this post, I have decided to anyway, as a token of my appreciation to the 1000th unique visitor to my site, and to those who have written comments on my blog. This chart relies on some principles of intermarket analysis, and is related to another technique I wrote about here. What my technique does... Read Full Story

Despite the tremendous volatility this last week, I think that gold and gold stocks held up very well. In particular, I thought gold's performance on Friday was outstanding. The metal was up almost 12 dollars, while everything else was in the red. You may have read about this, but the Fed added about $38 billion of liquidity to the system on Friday, which was supposed to help stabilize the markets. So, imagine that, $38 billion of money just created out of thin air. That's more than... Read Full Story

In this post I'm just going to go over quickly a monthly chart of the Euro Index. This chart should help you understand the big picture for the currency, and how it will affect other markets. I believe that the long term implications of the following chart are quite bullish, and I will explain why. In the chart below, each candle represents an entire month of price action. This chart goes back about 12 years. The main thing I wanted to point out, and I'm sure you can see it already, is... Read Full Story

The Forex market offers traders many advantages and opportunities that never existed before. Some advantages include: 24 hour trading, guaranteed stops, no commissions, the ability to go short with the click of a mouse, and the use of leverage without having to pay interest. However, there are many risks involved with trading currencies, and it can be a dangerous market if you don't know what you are doing. This is why it is essential to learn as much as you can before you actually... Read Full Story

Before I show the next example, let's have an update on how we are doing. In the past week, Example #3 is basically unchanged, but the important thing is that it has not broken its 50 day moving average. I actually bought a few shares of this company, and I'm going to keep on holding it until the 50 day moving average is broken. That could happened in a few days, or it could happen in a few years. The main thing I like about this strategy is that there is no emotion involved. If the... Read Full Story